Pardon what may be a naive question: $300k is the principal remaining on a house mortgage. The house's appraised value is currently $280k. Is it even possible for the house owner to refinance the original $300k at a different rate of interest?
I thought I read in the paper today that lenders do not refi when the appraised value is less than what is owed. Granted the bank's collateral stinks (the house is worth less than the loan amount). OTOH, it gets to loan out (for points and interest) a higher amount. Again, pardon any naivete here. I want to understand just how strapped some folks may be.
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